Vote 'no' on 15

IM 15 would be the single-largest tax increase in the history of South Dakota. A “one penny” increase might not sound like much — but it is a 25 percent increase in the sales tax that will take another $180 million, every year, out of your pockets.

It is easy to raise taxes “just a little bit, just this once.” It is easy to believe that we can tax and spend without consequences. From Washington, D.C., to California to Greece, that approach has been tried and it has failed.

Although the advertising in favor of 15 has focused on education, in fact only half of the proceeds of this tax increase would go to schools. The other half will go hospitals, doctors, nursing homes and other Medicaid providers, primarily to pay higher rates for the same services.

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Last year, I proposed and the Legislature passed a budget that made tough cuts to eliminate our state’s structural deficit. That budget included a 10 percent general fund cut to every state department, a 10 percent cut to Medicaid, and an 8.3 percent cut to K-12 education.

The total cut to Medicaid and to K-12 education, combined, was $77 million. Last year, we passed a budget that restored $18 million. That means it would take $59 million to “restore” the remainder of what was cut.

This $180 million tax increase would raise over triple what is necessary to restore the remaining cuts.

In South Dakota, we keep government small and efficient. We live within our means. We keep taxes low. We believe that economic growth, not higher taxes, is the way to pay for government services.

Our way is working. Our unemployment is low, and our personal income growth is high. We are adding jobs and our tax collections are going up. We have one of the strongest economies in the nation.